Marquez Enterprises Uses Activity-Based Pricing and Marks Up the Direct

question 47

Multiple Choice

Marquez Enterprises uses activity-based pricing and marks up the direct cost of goods by 40%.In addition, the customer is charged for indirect costs based on the activities utilized.Indirect costs are as follows: $7 per order placed and $11 per return.A customer places 12 orders with a direct cost of $6,100 and makes 2 returns.How much in indirect costs will the customer be charged?

• A)$18
• B)$106
• C)$6,206
• D)$2,440

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Definitions:

Cognitive Skills

Mental processes used in the acquisition of knowledge, such as memory, reasoning, problem-solving, and attention.

Work-Related Accidents

Incidents that occur in the course of work leading to physical or mental occupational injuries.

Task-Work Skills

Abilities and competencies required to effectively perform the specific functions and tasks of a job or role.

Teamwork Skills

Abilities that enable an individual to work effectively and collaboratively within a team environment.